BUS 690 Case Study
1. Please analyze Starbucks with the two bargaining powers in Porter’s model of five forces of competition.
2. Starbucks and Sazaby signed a joint venture agreementfor Starbucks Coffee Japan.
a) What is typical for a joint venture?
b) Why was it beneficial to use a joint venture in this case?
c) Please describe why the expansion mode of licensing may be less ideal in this case. (25%)
3. Starbucks owns the Seattle’s Best Coffee brand and the latter franchises its stores. What does the franchisor give in this case to the franchisee and vice versa? (35%)
Franchisor gives to franchisee | Franchisee gives to franchisor |
Equipment and Supplies | Expanding market |
Employee Training | Low Risk |
Intact Knowledge | Competitive advantage in local market |
Business Model | Brand Marketing |
Brand Name | Maintaining core values.
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